Burnham, who is due to become Britain’s prime minister on July 20, admitted he was blindsided by a funding gap in his predecessor Keir Starmer’s defense investment plan.
LONDON — Britain’s prime minister-in-waiting Andy Burnham pledged Thursday to find billions of pounds in his first budget to close a defense funding gap left by his predecessor.
Burnham said he will “take my responsibilities fully” to fund the Defence Investment Plan (DIP) announced earlier this week by outgoing Prime Minister Keir Starmer.
The DIP committed an extra £15 billion for Britain’s armed forces, including £5 billion towards autonomous systems, such as drones. However, Starmer left £4.7 billion to be found in this fall’s budget. The outgoing government has also failed to specify how it will raise a further £10.3 billion through Whitehall cuts and asset sales.
“I will take my responsibilities fully to fund the defense investment plan,” Burnham told LBC radio interviewer Andrew Marr. He added: “If I’m in the position to do so, I will take those responsibilities extremely seriously — no compromise on the security of the nation.”
Burnham’s pledge will reassure U.K. military chiefs but trigger months of speculation about tax rises, spending cuts or tweaks to borrowing rules that Burnham could enact to raise the funds at the next budget, which is expected in October or November.
Speaking in his first interview since winning a parliamentary by-election two weeks ago, Burnham — who is expected to become prime minister on July 20 — confirmed reports that he was not told about the spending gulf when Starmer’s government briefed him on the DIP.
“I didn’t have all of the details, I wasn’t in all the discussions,” he said.
Burnham said he was examining a tax rise on specific businesses as he faces difficult choices on spending.
“I believe there is a case for higher business rates on warehouses and the major developments we see on the outskirts of our cities,” he said, to cut business rates on pubs by 20 percent and on other high street establishments — such as bars, restaurants, coffee shops and hairdressers — by as much as 100 percent.
He also said the welfare system must be reformed, while insisting he would not cut benefit entitlements in a “crude” way.
However, he said he would stick to Labour’s 2024 manifesto pledge not to raise income tax rates, national insurance or VAT — the three taxes which raise the bulk of revenues.
Burnham also told Marr that he has still not settled on his finance minister amid heated divisions among his backers over whether to appoint Ed Miliband, the energy secretary.
Miliband’s pursuit of net-zero policies has endeared him to Labour’s left flank but angered the GMB and Unite unions, who represent workers in fossil-fuel industries. Some Burnham allies also fear an adverse market reaction if Miliband becomes chancellor.
“It’s been a little frustrating for me in the last 10 days, two weeks,” Burnham said. “Westminster goes into its normal mode and wants to endlessly speculate about personalities before policy and direction. I very deliberately have said no, I’m going to set out a new direction for the country.”
Burnham confirmed he plans to repurpose existing plans for a civil service campus in central Manchester to create what he has badged “No. 10 North” — an outpost of 10 Downing Street in northern England, at which his deputy chief of staff will be based full-time.
Groundworks began at the site in Ancoats last month. The government has previously said it will be the workplace for around “8,800 people from multiple government departments with a focus on digital delivery.”
Burnham did not set out a timescale for the creation of “No. 10 North” or discuss how many people it could involve. However, he has said it will be tasked with reforming utilities, regeneration and reindustrializing Britain, centralizing many powers held elsewhere in Whitehall.
In the wide-ranging interview, Burnham also said the whipping system in Westminster should not be used to “punish” MPs and said he would be willing to work with opposition parties to tackle the issue of gangs, many of them in northern towns, grooming and sexually abusing young women.
Burnham has been accused of avoiding scrutiny after he went weeks without giving an extended interview. Even on Thursday, he was a long way from clearing up all questions.
Asked if he would grant a public holiday if England’s soccer team wins the World Cup, Burnham faltered, noting that it would be premature given the tough match looming on Monday against Mexico.
“We only beat … we struggled, let’s say,” he said, a day after England narrowly remained in the tournament by clinching a late 2-1 win over the Democratic Republic of Congo thanks to team captain Harry Kane. “I think we might be getting ahead of ourselves.”